Recently banks were offering high deposit rates to mop up resources in order to meet the rising demand for loans from both corporates and individuals. Now the rates have come down as RBI has reduced the policy rates several times to increase the money flow into the system.

Commenting on his reserves, Bhasin said: "In the space we operate, there is no indication of lack of demand (for loans). While we grow the business on a smaller base, we see opportunity in all business segments, including corporate banking, small and medium enterprises, consumer banking and treasury space."

At the same time RBI has also given approval to the Singapore-based, United Overseas Bank Ltd to start a branch in India.